Guess? Inc (GES) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to the Guess? Second Quarter Fiscal 2023 Earnings Conference Call. I would like to turn the call over to Fabrice Benarouche, Vice President of Finance and Investor Relations.

大家好，歡迎來到 Guess？ 2023 財年第二季度收益電話會議。我想把電話轉給財務和投資者關係副總裁 Fabrice Benarouche。

Thank you, operator. Good afternoon, everyone, and thank you for joining us today. On the call today with me are Carlos Alberini, Chief Executive Officer; and Dennis Secor, Interim Chief Financial Officer.

謝謝你，接線員。大家下午好，感謝您今天加入我們。今天與我通話的是首席執行官 Carlos Alberini；以及臨時首席財務官 Dennis Secor。

During today's call, the company will be making forward-looking statements, including comments regarding future plans, strategic initiatives, capital allocation and short- and long-term outlook including potential impact from the coronavirus pandemic.

在今天的電話會議中，公司將發表前瞻性陳述，包括對未來計劃、戰略舉措、資本分配以及短期和長期前景的評論，包括冠狀病毒大流行的潛在影響。

The company's actual results may differ materially from current expectations based on risk factors included in today's press release and the company's quarterly and annual reports filed with the SEC. Comments will also reference certain non-GAAP or adjusted measures. GAAP reconciliations and descriptions of these measures can be found in today's earnings release.

根據今天的新聞稿以及公司向美國證券交易委員會提交的季度和年度報告中包含的風險因素，公司的實際結果可能與當前的預期存在重大差異。評論還將參考某些非公認會計原則或調整後的措施。 GAAP 對賬和這些措施的描述可以在今天的收益發布中找到。

Now I will turn it over to Carlos.

現在我將把它交給卡洛斯。

Thank you, Fabrice. Good afternoon, everyone, and thank you for joining us today. I am pleased to report our second quarter performance, which exceeded our expectations for revenues, operating earnings and operating margin in spite of a challenging environment impacting several of our markets. Our revenues grew over 2% in U.S. dollars and almost 12% in constant currency, demonstrating the continued strong momentum of our brand and our ability to gain share in a difficult market. We delivered an 8.7% adjusted operating margin and $56 million in adjusted earnings from operations.

謝謝你，法布里斯。大家下午好，感謝您今天加入我們。我很高興地報告我們第二季度的業績，儘管環境充滿挑戰，影響我們的幾個市場，但仍超出了我們對收入、營業收入和營業利潤率的預期。我們的收入以美元計算增長超過 2%，按固定匯率計算增長近 12%，表明我們品牌的持續強勁勢頭以及我們在困難市場中獲得份額的能力。我們實現了 8.7% 的調整後營業利潤率和 5600 萬美元的調整後運營收益。

While our financial performance was solid, I am most impressed with our team's strong ability to navigate through the current macro environment, which continues to present meaningful headwinds that impact our revenues, margins and expenses. Our team continues to focus on what we can control, managing costs, inventories and free cash flow carefully and planning the business based on expected customer demand by product category, channel and territory.

雖然我們的財務表現穩健，但我對我們團隊在當前宏觀環境中的強大駕馭能力印象最深，這繼續帶來影響我們收入、利潤率和支出的重大逆風。我們的團隊繼續專注於我們可以控制的事情，仔細管理成本、庫存和自由現金流，並根據產品類別、渠道和地區的預期客戶需求規劃業務。

Paul and I want to take this opportunity to thank all our associates for their outstanding work and great dedication. Your contributions have made all the difference in the last few years, and we appreciate your commitment and hard work.

保羅和我想藉此機會感謝我們所有員工的出色工作和奉獻精神。在過去的幾年裡，您的貢獻使一切變得不同，我們感謝您的承諾和辛勤工作。

Today, I will first review our performance by business. I will then provide an update regarding our key strategic initiatives, and I will close with a brief update of our outlook for the year. Let me start with our performance by business. Our Europe segment reported a 4% revenue increase in U.S. dollars, but a 21% increase in constant currency for the period. While our brand continues to gain momentum in this region, the weaker euro is having a major impact on our results, and it was one of the main drivers for the lower profitability in the quarter.

今天，我將首先按業務回顧我們的表現。然後，我將提供有關我們關鍵戰略舉措的最新信息，最後我將簡要介紹我們今年的展望。讓我從我們的業務表現開始。我們的歐洲部門報告以美元計算的收入增長了 4%，但在此期間以固定貨幣計算增長了 21%。雖然我們的品牌在該地區繼續獲得動力，但疲軟的歐元對我們的業績產生了重大影響，這是本季度盈利能力下降的主要驅動因素之一。

Our Americas retail business reported a small revenue contraction and an almost 40% decrease in earnings from operations in the period. Last year, our second quarter performance in this business benefited from greater spending due to the stimulus checks distributed by the U.S. government. Product availability was low and sales at full price were extraordinary then. This year, while we continue to run our business with a lower promotional cadence and a healthy inventory position, lower customer traffic and weaker conversion impacted our store productivity and margin performance during the period.

我們的美洲零售業務報告期內收入小幅收縮，運營收益下降近 40%。去年，我們在這項業務的第二季度業績得益於美國政府發放的刺激性支票帶來的更多支出。當時的產品供應量很低，全價銷售非常驚人。今年，雖然我們繼續以較低的促銷節奏和健康的庫存狀況開展業務，但較低的客流量和較弱的轉化影響了我們在此期間的商店生產力和利潤率表現。

Our Americas Wholesale segment was up slightly in revenues, though operating margin declined in the period due to increased customer accommodations. Our Asia business reported a small revenue increase in U.S. dollars and a double-digit increase in constant currency. While the business was once again impacted by COVID restrictions in China, we were able to reduce the loss from operations.

我們的美洲批發部門的收入略有增長，但由於客戶住宿增加，營業利潤率在此期間有所下降。我們的亞洲業務報告了以美元計算的小幅收入增長和以固定貨幣計算的兩位數增長。雖然業務再次受到中國 COVID 限制的影響，但我們能夠減少運營損失。

Lastly, our licensing business registered another successful quarter, with revenues up 13% and earnings from operations up 5%. Several categories posted solid results in the quarter, led by handbags, watches and fragrances.

最後，我們的許可業務又取得了一個成功的季度，收入增長了 13%，運營收益增長了 5%。本季度多個品類取得了可觀的業績，其中以手袋、手錶和香水為首。

Regarding our product performance, I strongly believe that our current product offering is by far the best it has been in a very long time, if not forever. And the customer is responding well to our collections. Across both our GUESS and Marciano brands, our elevated styling, great quality, superior prints and sophisticated fabrications continue to resonate, driving repeat customer engagement.

關於我們的產品性能，我堅信我們目前的產品供應是很長一段時間以來最好的，如果不是永遠的話。客戶對我們的收藏反應良好。在我們的 GUESS 和 Marciano 品牌中，我們提升的造型、卓越的品質、卓越的印花和精緻的製作繼續引起共鳴，推動回頭客的參與。

During the quarter, we continued to leverage the flexibility of our brand's lifestyle offering and appeal, adapting our assortments and product buys to meet our customers' demand for the appropriate purchase occasions. With increased customer interest and engagement in traveling, going out, socializing and attending events, we saw strength in our dressy products, including dresses and skirts, woven shirts and non-denim pants for both women and men, men's blazers and special outerwear pieces.

在本季度，我們繼續利用我們品牌的生活方式和吸引力的靈活性，調整我們的分類和產品購買，以滿足客戶對適當購買場合的需求。隨著客戶對旅行、外出、社交和參加活動的興趣和參與度增加，我們看到了我們的正裝產品的實力，包括連衣裙和裙子、梭織襯衫和男女非牛仔褲、男士西裝外套和特殊外套。

Our accessories business was very strong in the quarter, driven by outstanding sales of women's handbags. We also delivered solid results in women's and men's travel accessories, small leather goods, jewelry, eyewear fragrances and watches.

本季度我們的配飾業務非常強勁，主要得益於女包的出色銷售。我們還在女士和男士旅行配飾、小皮具、珠寶、眼鏡香水和手錶方面取得了可觀的成績。

Regarding our strategic initiative, I will focus on a few key areas that we consider critical to win in this environment. I will start with our supply chain and inventory management. We have strategically responded to the supply chain disruptions that we experienced last year by ordering product earlier. In addition, global supply chains are recovering and delivery times have improved. As a result, we have been able to receive product early and meet the demands of our business very effectively.

關於我們的戰略舉措，我將重點關注我們認為在這種環境中取勝至關重要的幾個關鍵領域。我將從我們的供應鍊和庫存管理開始。我們通過提前訂購產品，對去年經歷的供應鏈中斷做出了戰略性反應。此外，全球供應鏈正在恢復，交貨時間也有所改善。因此，我們能夠及早收到產品並非常有效地滿足我們的業務需求。

We closed the second quarter with inventory growth of $105 million, up 25% in U.S. dollars. About 80% of this increase represents the anticipation of deliveries with roughly half of that received in our warehouses and the other half in transit. The remaining 20% is due to increases in average unit cost, reflecting quality upgrades and the effect of inflation. We are very pleased with the quality and mix of our inventory ownership and future orders to service our business well during the remainder of the year.

我們在第二季度結束時庫存增長了 1.05 億美元，以美元計算增長了 25%。大約 80% 的增長代表預期交付，其中大約一半在我們的倉庫收到，另一半在運輸途中。剩下的 20% 是由於平均單位成本的增加，反映了質量升級和通貨膨脹的影響。我們對我們的庫存所有權和未來訂單的質量和組合感到非常滿意，以便在今年剩餘時間內為我們的業務提供良好的服務。

With respect to inbound freight cost increases, we are seeing some relief from last year's peak levels. We have focused on reducing our air freight with success, resulting in meaningful cost reductions. While the freight cost pressures we experienced may subside in the future, we are not planning significant improvements for the second half of this year.

關於入境貨運成本的增加，我們看到從去年的峰值水平有所緩解。我們專注於成功減少空運，從而顯著降低成本。雖然我們所經歷的運費成本壓力可能會在未來消退，但我們並未計劃在今年下半年進行重大改進。

Our experience during the pandemic made it very clear that our business can benefit from increased inventory visibility, efficiencies and more effective planning and allocation processes. Accordingly, we have been investing in several new applications to upgrade our existing systems to improve information availability, productivity and data analytics. We have already implemented some of the solutions in Europe with very good results and plan to complete the rollout in North America by mid next year. We have also re-architected our replenishment processes into stores to accelerate the delivery cycle to improve conversion and sell-throughs.

我們在大流行期間的經驗清楚地表明，我們的業務可以從提高庫存可見性、效率以及更有效的計劃和分配流程中受益。因此，我們一直在投資幾個新的應用程序來升級我們現有的系統，以提高信息可用性、生產力和數據分析。我們已經在歐洲實施了一些解決方案並取得了非常好的效果，併計劃在明年年中完成在北美的推廣。我們還在商店中重新設計了補貨流程，以加快交付週期，從而提高轉化率和銷售率。

Next, I would like to provide an update on our brand elevation strategy, which continues to drive many of our product initiatives with a strong focus on our key target customer groups. Since the launch of our global line for all product categories over 2 years ago, Paul and the product teams have done an extraordinary job integrating the multiple phases that impact our product development and presentation life cycle. These efforts touched every aspect of design, including taste, style and quality with a strong focus on sustainability. They also impacted pricing, marketing campaigns, e-commerce imagery and visual merchandising. Our ultimate goal here is to deliver a globally consistent and seamless presentation of all our products in the 25 categories that we do business in, regardless of the channel, the customer is choosing to engage with our brand.

接下來，我想提供有關我們品牌提升戰略的最新信息，該戰略將繼續推動我們的許多產品計劃，重點關注我們的主要目標客戶群。自 2 多年前推出我們所有產品類別的全球線以來，Paul 和產品團隊在整合影響我們產品開發和展示生命週期的多個階段方面做得非常出色。這些努力觸及設計的方方面面，包括品味、風格和質量，重點關注可持續性。它們還影響了定價、營銷活動、電子商務圖像和視覺營銷。我們的最終目標是在我們開展業務的 25 個類別中提供全球一致且無縫的產品展示，無論客戶選擇何種渠道與我們的品牌互動。

We have significantly improved the quality of our products across the board, including fabrics, trims and make, and we have priced every product based on its respective perceived value. We have raised prices but very thoughtfully so the customer recognizes why these increases are warranted. We are now focused on further tightening our assortment and buying the big story groups with significant conviction to improve sales and optimize service levels. We also plan to develop exclusive products for our direct-to-consumer channels, leveraging a speed-to-market model anchored on new sourcing countries that are in proximity to where the product will be distributed for sale. We believe this is a big long-term opportunity for us.

我們全面顯著提高了產品的質量，包括面料、飾邊和製造，我們根據每件產品各自的感知價值為其定價。我們已經提高了價格，但經過深思熟慮，因此客戶認識到為什麼這些上漲是有道理的。我們現在專注於進一步收緊我們的產品種類併購買具有重大信念的大故事組，以提高銷售和優化服務水平。我們還計劃為我們的直接面向消費者的渠道開發獨家產品，利用基於新採購國家/地區的快速上市模式，這些國家/地區靠近產品將被分銷到銷售的地方。我們相信這對我們來說是一個巨大的長期機會。

Enhancing the customer experience also remains a priority for us, and we have implemented several upgrades to our store and e-com infrastructure to improve ease of shopping and increase customer conversion. In this regard, we made remarkable progress towards building a best-in-class platform, which offers strong omnichannel and data analytics capabilities. We continue to make good progress with our Customer 360 project implementation in Europe. This includes a new CRM platform, a new segmentation tool, a new marketing tool and a clienteling app. While all these modules have been released already, we are going through an optimization process as we speak in Europe, which we plan to finish by year-end. In line with this timeline, we now expect to finalize the rollout in North America early next year.

提升客戶體驗仍然是我們的首要任務，我們已經對我們的商店和電子商務基礎設施進行了多次升級，以提高購物便利性並增加客戶轉化率。在這方面，我們在打造一流平台方面取得了顯著進展，該平台提供強大的全渠道和數據分析能力。我們繼續在歐洲實施 Customer 360 項目取得良好進展。這包括一個新的 CRM 平台、一個新的細分工具、一個新的營銷工具和一個客戶應用程序。雖然所有這些模塊都已經發布，但我們正在歐洲進行優化過程，我們計劃在年底前完成。根據這一時間表，我們現在預計將於明年初完成在北美的推出。

We also believe the current environment presents a great opportunity to focus on delivering outstanding customer service as a competitive differentiator to drive increased engagement and conversion. Our sales teams in the field are our best brand ambassadors and customers always compliment their assistance and product knowledge. We are investing in product and process training for our store associates and our customer care teams and have increased our labor schedules to improve coverage, especially during high-traffic periods, including holidays.

我們還認為，當前的環境提供了一個絕佳的機會，可以專注於提供出色的客戶服務，以此作為競爭優勢，以推動提高參與度和轉化率。我們在該領域的銷售團隊是我們最好的品牌大使，客戶總是稱讚他們的幫助和產品知識。我們正在為我們的商店員工和客戶服務團隊投資產品和流程培訓，並增加了我們的勞動力安排以提高覆蓋率，尤其是在包括假期在內的人流高峰期。

Our stores continue to be at the center of our customer engagement strategy, and they represent a critical venue for customer acquisition and data collection. We have made meaningful investments over the last few years to remodel many of our stores, and we opened several new stores in the U.S. and Europe that feature a more elevated store design and a much improved customer experience. As sales for certain product categories such as accessories continue to outperform, we have reallocated the space dedicated to those categories to optimize sales productivity by store, and we are very pleased with the early results this initiative is generating. Last year, we opened 87 new stores. And this year, we are opening 60 additional stores and closing 70 locations. Regarding remodels, in the last 2 years, we impacted 230 locations between North America and Europe, and we now have plans to impact an additional 335 this year.

我們的商店仍然是我們客戶參與戰略的中心，它們代表了客戶獲取和數據收集的關鍵場所。在過去的幾年裡，我們進行了有意義的投資來改造我們的許多商店，我們在美國和歐洲開設了幾家新店，這些新店的店面設計更加高級，客戶體驗也有了很大改善。隨著某些產品類別（例如配件）的銷售繼續表現出色，我們重新分配了專門用於這些類別的空間，以按商店優化銷售效率，我們對這一舉措產生的早期成果感到非常滿意。去年，我們開了 87 家新店。今年，我們將新開 60 家門店，關閉 70 家門店。關於改造，在過去 2 年中，我們影響了北美和歐洲之間的 230 個地點，我們現在計劃今年再影響 335 個。

I would now like to touch on our ESG focus, which includes our efforts regarding diversity and inclusion, social responsibility and sustainability. At Guess?, we have a very diverse and inclusive culture. As we last reported, over 40% of our senior executives are female and over 70% of our managers are female. Guess? has also achieved gender pay parity at our U.S. corporate offices, and we'll continue to monitor and report on this metric globally.

我現在想談談我們對 ESG 的關注，其中包括我們在多元化和包容性、社會責任和可持續性方面所做的努力。在 Guess?，我們擁有非常多元化和包容性的文化。正如我們上次報導的那樣，我們超過 40% 的高級管理人員是女性，超過 70% 的經理是女性。猜測？在我們的美國公司辦事處也實現了性別薪酬平等，我們將繼續在全球範圍內監測和報告這一指標。

Regarding sustainability, we have launched exciting partnerships with Resourced Homeboy Industries and Debrand Canada to facilitate a program to recycle clothing return by customers. Regarding carbon emissions, in fiscal 2022, we achieved a reduction in absolute value of 49% from our 2019 baseline, well ahead of our original goals.

在可持續性方面，我們與 Resourced Homeboy Industries 和 Debrand Canada 建立了令人興奮的合作夥伴關係，以促進一項回收客戶退貨的計劃。關於碳排放，在 2022 財年，我們的絕對值比 2019 年的基線減少了 49%，遠遠超過了我們最初的目標。

Last, we have just begun a collaboration with a start-up company called Edmond Climate Network to develop a solution to measure carbon emissions at the product level to optimize carbon emission analysis during the product development cycle. This platform will eventually allow the purchase of carbon offset certificates, creating a precise path to a Net Zero Strategy.

最後，我們剛剛開始與一家名為 Edmond Climate Network 的初創公司合作，開發一種在產品層面測量碳排放的解決方案，以優化產品開發週期中的碳排放分析。該平台最終將允許購買碳抵消證書，為實現淨零戰略創造精確路徑。

Let me now share a brief update of our outlook. We anticipate that softer consumer demand trends as well as currency and other macroeconomic headwinds will continue to weigh on our results even as we continue to control what we can control and manage the business effectively. We now expect our revenues for the year to reach a low single-digit growth rate in U.S. dollars and a high single-digit growth rate in constant currency. We also expect our adjusted operating margin to reach 10% for the year. This outlook is down from the one that we shared with you in our last call, primarily due to currencies, and Dennis will explain how our key assumptions have changed.

現在讓我簡要介紹一下我們的展望。我們預計，即使我們繼續控制我們可以有效控制和管理業務的內容，疲軟的消費者需求趨勢以及貨幣和其他宏觀經濟逆風仍將繼續影響我們的業績。我們現在預計我們今年的收入將達到美元的低個位數增長率和固定貨幣的高個位數增長率。我們還預計今年調整後的營業利潤率將達到 10%。這一前景低於我們在上次電話會議中與您分享的前景，主要是由於貨幣問題，丹尼斯將解釋我們的關鍵假設是如何變化的。

Looking forward to our expectations for fiscal year 2024 with changing macro conditions of significance, we expect to review the assumptions underlying our long-term targets in the next few months, and we'll update you on any changes to our assumptions and plan when this work is complete.

展望我們對 2024 財年的預期，宏觀條件不斷變化，我們預計將在未來幾個月審查我們長期目標的假設，我們將在此情況下向您更新我們的假設和計劃的任何變化工作完成。

Before I conclude, I want to reiterate our strong commitment to returning value to all our shareholders. In line with this, during the quarter, we completed our accelerated share repurchase program. And together with other stock purchases that we executed earlier this year, we have retired 14% of our shares outstanding at the beginning of the year.

在結束之前，我想重申我們對向所有股東回報價值的堅定承諾。與此一致，在本季度，我們完成了加速股票回購計劃。連同我們今年早些時候執行的其他股票購買，我們已經在年初收回了 14% 的流通股。

In closing, as I reflect on what we have all lived through since the pandemic began, our team at Guess? has faced challenges by leaning in and using the dynamic environment to our advantage. We have completely transformed our business, and I couldn't be more impressed with the results that our team delivered. I'm more confident in the positioning of our company for the long term as a result of this work.

最後，當我回顧自大流行開始以來我們都經歷過的事情時，我們在 Guess 的團隊？通過了解和利用動態環境為我們帶來優勢，我們面臨挑戰。我們已經徹底改變了我們的業務，我對我們團隊交付的成果印象深刻。由於這項工作，我對我們公司的長期定位更有信心。

During the last 3 years, we executed our brand elevation strategy, including our global line initiative. And today, we have the strongest product assortment in our company's history, consistently presented across all markets. We transformed our digital platform, improving the customer experience and data analytics capabilities. We optimized our store portfolio, closing underperforming stores and renegotiating favorable lease terms. And we reorganized our operating model, achieving efficiencies and eliminating redundancies globally. This transformation contributed to delivering double-digit operating margins and high return on invested capital for the first time in a very long time for the company.

在過去 3 年中，我們執行了品牌提升戰略，包括我們的全球線計劃。今天，我們擁有公司歷史上最強大的產品組合，始終如一地在所有市場上展示。我們改造了我們的數字平台，改善了客戶體驗和數據分析能力。我們優化了門店組合，關閉了業績不佳的門店並重新協商了有利的租賃條款。我們重組了我們的運營模式，在全球範圍內實現了效率並消除了冗餘。這種轉變有助於公司在很長一段時間內首次實現兩位數的營業利潤率和高投資資本回報。

Today, our brand momentum is strong, and our customers are responding well to our collections. We have a powerful business model and a robust capital structure. We're managing the business with discipline, controlling what we can control and deploying our capital where it can deliver the highest returns. And we have a great team that is ready to jump at every opportunity to make the business better, aggressively gain market share and grow profitably. Paul and I couldn't be more proud of this team and more excited about our future.

今天，我們的品牌勢頭強勁，我們的客戶對我們的系列反應良好。我們擁有強大的商業模式和穩健的資本結構。我們有紀律地管理業務，控制我們可以控制的東西，並將我們的資本部署到可以帶來最高回報的地方。我們擁有一支優秀的團隊，隨時準備抓住每一個機會，讓業務變得更好，積極爭取市場份額並實現盈利增長。保羅和我為這支球隊感到無比自豪，對我們的未來感到無比興奮。

With that, let me now pass it to Dennis to review our financials and our outlook in more detail. Dennis?

有了這個，現在讓我將它傳遞給丹尼斯，以更詳細地審查我們的財務狀況和我們的前景。丹尼斯？

Thank you, Carlos, and good afternoon, everyone. Echoing Carlos' remarks, our team is managing our business well in an evolving commercial environment. In parts of our business, we delivered strong growth as some markets regained traction after long pandemic restrictions. In other areas, there were challenges as consumers are reacting to global inflation and softening economic sentiments by tightening their spending. We mitigated these challenges by reducing controllable spending. Overall, for the quarter, we delivered both revenues and adjusted operating earnings that exceeded the outlook that we provided a quarter ago, even as significant currency headwinds persist.

謝謝你，卡洛斯，大家下午好。與 Carlos 的評論相呼應，我們的團隊在不斷變化的商業環境中很好地管理了我們的業務。在我們的部分業務中，隨著一些市場在長期的大流行限制後重新獲得牽引力，我們實現了強勁增長。在其他領域，由於消費者正在通過收緊支出來應對全球通脹並軟化經濟情緒，因此面臨挑戰。我們通過減少可控支出來緩解這些挑戰。總體而言，在本季度，我們實現的收入和調整後的營業收益都超過了我們在一個季度前提供的前景，即使重大的貨幣逆風持續存在。

And before I review our performance, I want to first quantify the material impact that currencies are having on our financial results. Recall that currencies affect our financials in 3 ways: First is translation, where we convert foreign currency sales, expenses and profits into U.S. dollars. Second is transaction when our foreign subs buy products in U.S. dollars. They now need, for example, in Europe, more euros to buy their inventory. It is, in essence, an additional form of product inflation. And last is non-operating mark-to-market changes. This represents changes in values of certain foreign assets and liabilities and hedge contracts, among other things.

在回顧我們的業績之前，我想首先量化貨幣對我們財務業績的重大影響。回想一下，貨幣以 3 種方式影響我們的財務狀況：首先是換算，我們將外幣銷售額、費用和利潤轉換為美元。其次是我們的外國潛艇以美元購買產品時的交易。例如，在歐洲，他們現在需要更多的歐元來購買他們的庫存。從本質上講，它是產品通脹的另一種形式。最後是非經營性的按市值計價的變化。這代表了某些外國資產和負債以及對沖合約等價值的變化。

For the second quarter, the negative currency impact on revenue was $60 million, reducing top line growth by about 10 full percentage points. The negative impact on operating earnings was $13 million and on operating margin, it was 110 basis points. Finally, the adjusted EPS headwind was about $0.19, including also the year-over-year impact of the mark-to-market currency headwinds. While we do have a hedging program, it is limited in its ability to mitigate the full currency impact. I'll share the full year impact in a moment, but I wanted to provide this overview first to give context to our second quarter results. So let's get into the quarter.

第二季度，貨幣對收入的負面影響為 6000 萬美元，使收入增長減少了約 10 個百分點。對營業收入的負面影響為 1300 萬美元，對營業利潤率的負面影響為 110 個基點。最後，調整後的每股收益逆風約為 0.19 美元，還包括按市值計算的貨幣逆風的同比影響。雖然我們確實有一個對沖計劃，但它減輕全部貨幣影響的能力有限。稍後我將分享全年的影響，但我想首先提供此概述，以便為我們的第二季度業績提供背景信息。所以讓我們進入這個季度。

Second quarter revenues reached $643 million, a 2% increase in U.S. dollars and a 12% increase in constant currency. Our revenue growth was primarily driven by strong performance in our European Wholesale business, positive European retail comps, along with sales from new stores that we've added over the last year. Comp declines in our U.S. stores partially offset this growth.

第二季度收入達到 6.43 億美元，按美元計算增長 2%，按固定匯率計算增長 12%。我們的收入增長主要得益於我們歐洲批發業務的強勁表現、積極的歐洲零售業績以及我們在去年增加的新店銷售額。我們美國商店的銷售額下降部分抵消了這一增長。

In Europe, our business performed well with higher sales, both in our retail stores and from our wholesale customers. Revenues increased 4% in U.S. dollars and 21% in constant currency. Revenue growth for the segment was driven primarily by higher shipments to wholesale accounts, a 12% constant currency store comp sales increase and new stores that have been added in the region over the last year. Our revenue growth in Europe includes about $18 million in wholesale shipments to customers that we had previously anticipated would be delivered in the third quarter.

在歐洲，我們的業務表現良好，零售店和批發客戶的銷售額均有所提高。以美元計算的收入增長了 4%，以固定匯率計算的收入增長了 21%。該部門的收入增長主要受到批發賬戶出貨量增加、固定貨幣商店銷售額增長 12% 以及去年該地區新增商店的推動。我們在歐洲的收入增長包括向客戶批發約 1800 萬美元的貨物，我們之前預計這些貨物將在第三季度交付。

In our European retail stores, the 12% comp was driven by strong traffic increases similar to our Q1 levels. Conversion headwinds abated from the first quarter and AUR increases also decelerated sequentially. European operating earnings decreased over 30% and the operating margin decline by 560 basis points as a result of lower gross margins across all channels, partially offset by expense leverage.

在我們的歐洲零售店，12% 的收入是由與我們第一季度水平相似的強勁客流量增長推動的。轉換逆風從第一季度開始減弱，AUR 增長也依次減速。由於所有渠道的毛利率下降，歐洲營業收入下降了 30% 以上，營業利潤率下降了 560 個基點，部分被費用槓桿所抵消。

In Americas Retail, revenues decreased 2%, both in U.S. dollars and in constant currencies. Revenues benefited from the reopening of Canadian stores that had been closed last year due to COVID restrictions as well as new store growth. These were more than offset by an overall 5% constant currency store comp decline as well as some permanent store closures. In the quarter, both traffic and AURs were higher than they were in last year's second quarter, though both of these metrics decelerated from their levels a quarter ago. Conversion also continued to be down.

在美洲零售業，以美元和固定貨幣計算的收入均下降了 2%。收入受益於去年因 COVID 限製而關閉的加拿大商店的重新開業以及新店的增長。這些被整體 5% 的固定貨幣商店收入下降以及一些永久性商店關閉所抵消。在本季度，流量和 AUR 均高於去年第二季度，儘管這兩個指標都比上一季度的水平有所下降。轉化率也繼續下降。

Our tourist locations, while still outperforming the rest of the fleet did not outperform at the same level we had seen in the first quarter, likely affected by the strong U.S. dollars impact on tourism. Americas Retail operating profit declined 38% and operating margin declined 720 basis points, driven by lower gross margins, higher store selling costs, and a lower level of COVID relief this year.

我們的旅遊地點雖然仍然優於其他車隊，但並未達到我們在第一季度看到的水平，這可能受到美元對旅遊業的強勁影響的影響。美洲零售營業利潤下降了 38%，營業利潤率下降了 720 個基點，這是由於今年毛利率下降、商店銷售成本上升以及 COVID 救濟水平降低。

In Americas Wholesale, revenues increased by 1% in U.S. dollars and 2% in constant currency. Operating profit declined 12% and operating margin declined 320 basis points, mainly due to the lower product margins from the increased customer accommodations Carlos mentioned earlier.

在 Americas Wholesale，按美元計算的收入增長了 1%，按固定匯率計算增長了 2%。營業利潤下降 12%，營業利潤率下降 320 個基點，主要是由於前面提到的 Carlos 客戶住宿增加導致產品利潤率下降。

In Asia, revenue grew 3% in U.S. dollars and 15% in constant currency. The main drivers of the increase were the direct operation of some of our South Korea retail stores, which we acquired from one of our wholesale partners. Our retail stores in Asia also delivered constant currency comp growth of 13% in the quarter. While traffic was down compared to a year ago, improvements in both conversion and AUR drove our comp growth. These increases were partially offset by the temporary closure of some of our stores due to COVID restrictions in China. The segment operating loss improved nearly $2 million, driven mainly by lower SG&A expenses this year.

在亞洲，按美元計算的收入增長了 3%，按固定匯率計算增長了 15%。增長的主要驅動力是我們從我們的批發合作夥伴之一收購的一些韓國零售店的直接運營。我們在亞洲的零售店在本季度也實現了 13% 的固定匯率增長。雖然流量與一年前相比有所下降，但轉化率和 AUR 的改善推動了我們的收入增長。由於中國的 COVID 限制，我們的一些商店暫時關閉，部分抵消了這些增長。該部門的經營虧損減少了近 200 萬美元，主要是由於今年的 SG&A 費用減少。

And finally, in our Licensing segment, royalty revenues increased 13%, driven primarily by a strong increase in global selling of handbags. Segment operating profit increased by roughly $2 million. In the quarter, total company gross margin contracted 470 basis points to 42.1%, driven mainly by product margin compression. That decline was driven primarily by a different mix of full price versus markdown business, both in the Americas and in Europe, along with the currency headwinds, which intensified in the quarter. Last year's second quarter occupancy costs benefited from COVID-related rent relief, which did not recur at the same level in the second quarter this year.

最後，在我們的授權業務領域，特許權使用費收入增長了 13%，這主要得益於全球手袋銷量的強勁增長。分部營業利潤增加了大約 200 萬美元。本季度，公司總毛利率收縮 470 個基點至 42.1%，主要受產品利潤率壓縮的推動。這種下降主要是由於美洲和歐洲的全價與降價業務的不同組合，以及本季度加劇的貨幣逆風。去年第二季度的入住成本受益於與 COVID 相關的租金減免，而今年第二季度的租金減免並未達到相同水平。

Adjusted SG&A for the second quarter increased 5% to $215 million, including a favorable currency impact of $18 million compared to last year's expense level. The largest increase in our SG&A expenses came from our retail stores, where we continue to experience labor cost pressures given both the impact of global inflation and strong employment in many of our markets. In addition, we operated with more retail stores fully opened in the second quarter this year compared to a year ago.

第二季度調整後的 SG&A 增長 5% 至 2.15 億美元，其中包括與去年費用水平相比 1800 萬美元的有利貨幣影響。我們的 SG&A 費用增幅最大的來自我們的零售店，鑑於全球通脹的影響和我們許多市場的強勁就業，我們在零售店繼續面臨勞動力成本壓力。此外，與去年同期相比，我們在今年第二季度開設了更多零售店。

In last year's second quarter, we also benefited from about $3 million of COVID-related subsidies that did not recur at the same level this year. For the quarter, our adjusted SG&A rate increased 70 basis points to 33.4%. Adjusted operating profit totaled $56 million in the quarter, a 37% decline compared to last year's Q2 and adjusted operating margin declined to 8.7%, 540 basis points lower than a year ago. In the quarter, we recorded nonoperating net charges of $9 million related primarily to revaluations of certain of our foreign subsidiaries net assets and liabilities into U.S. dollars. Our second quarter adjusted tax rate was 40%, up from last Q2's rate of 22%. Adjusted EPS in the quarter was $0.39 versus last Q2 $0.96.

在去年的第二季度，我們還受益於約 300 萬美元的與 COVID 相關的補貼，這些補貼在今年沒有以相同的水平再次出現。本季度，我們調整後的 SG&A 利率上升 70 個基點至 33.4%。本季度調整後的營業利潤總額為 5600 萬美元，與去年第二季度相比下降了 37%，調整後的營業利潤率下降至 8.7%，比一年前下降了 540 個基點。在本季度，我們記錄了 900 萬美元的非經營性淨費用，主要與我們將某些外國子公司的淨資產和負債重估為美元有關。我們第二季度的調整後稅率為 40%，高於去年第二季度的 22%。本季度調整後每股收益為 0.39 美元，而上一季度為 0.96 美元。

Moving to the balance sheet. During the quarter, as Carlos noted, we finalized our $175 million accelerated share repurchase program that we initiated in March of this year. We made no open market purchases in the quarter, leaving our remaining authorization at $62 million. As we shared on our last call, in the quarter, we finalized our EUR 250 million revolving credit facility in Europe more than doubling the region's borrowing capacity. The initial term of the facility is 5 years and provides options for a 2-year extension and a EUR 100 million expansion, both subject to certain conditions.

轉移到資產負債表。正如 Carlos 所說，在本季度，我們完成了今年 3 月啟動的 1.75 億美元加速股票回購計劃。我們在本季度沒有進行公開市場購買，剩下的授權為 6200 萬美元。正如我們在上次電話會議上分享的那樣，在本季度，我們完成了在歐洲的 2.5 億歐元循環信貸安排，使該地區的借貸能力增加了一倍多。該設施的初始期限為 5 年，並提供 2 年延期和 1 億歐元擴建的選項，兩者均受特定條件限制。

We ended the first quarter with $174 million in cash compared to $459 million a year ago. The decrease in cash was primarily driven by $238 million of share repurchase executed in the last 12 months including the ASR, as well as the $107 million tax payment related to last year's IP transfer to Europe. We ended the quarter with a total of $342 million of borrowing availability on our various global facilities. We believe we are in an excellent financial position with a solid capital structure, access to ample capital and an operating model that generates strong cash flows supporting our operating and investment needs and our goals to return capital to shareholders.

我們以 1.74 億美元現金結束第一季度，而一年前為 4.59 億美元。現金減少的主要原因是過去 12 個月執行的 2.38 億美元股票回購，包括 ASR，以及與去年向歐洲轉讓知識產權相關的 1.07 億美元稅款。在本季度末，我們在各種全球設施中的借款總額為 3.42 億美元。我們相信我們的財務狀況良好，擁有穩健的資本結構、充足的資本和產生強勁現金流的運營模式，支持我們的運營和投資需求以及我們向股東返還資本的目標。

Inventories were $536 million, up 24% in U.S. dollars and 38% in constant currency versus last year. As Carlos mentioned, our additional inventory investment primarily reflects our strategy to order earlier this year, and we do expect year-end inventory to better align with the trends in our business. Receivables were $302 million, roughly flat to last year's $300 million. On a constant currency basis, receivables increased about 15%.

存貨為 5.36 億美元，與去年相比，按美元計算增長 24%，按固定匯率計算增長 38%。正如 Carlos 所說，我們額外的庫存投資主要反映了我們今年早些時候訂購的戰略，我們確實預計年終庫存將更好地與我們的業務趨勢保持一致。應收賬款為 3.02 億美元，與去年的 3 億美元大致持平。按固定匯率計算，應收賬款增加約 15%。

For the first half of this year, capital expenditures were $51 million, up from $22 million in the prior year, mainly driven by investments in remodels, new stores and technology. Free cash flow for the first half of this year reflects the net investment of $54 million versus a net source of $18 million in the prior year. The change being mainly driven by this year's inventory acceleration, higher capital spending and lower net cash earnings.

今年上半年，資本支出為 5100 萬美元，高於去年的 2200 萬美元，主要受改造、新店和技術投資的推動。今年上半年的自由現金流反映了 5400 萬美元的淨投資，而去年的淨投資為 1800 萬美元。這一變化主要受到今年庫存加速、資本支出增加和淨現金收益下降的推動。

Today, we also announced that our Board approved our quarterly dividend of $0.225 which at recent stock prices represents an annual yield over 4.5%.

今天，我們還宣布我們的董事會批准了我們 0.225 美元的季度股息，按最近的股價計算，年收益率超過 4.5%。

So now let's talk about the rest of the year and next quarter. I want to first reflect on our business model, our second quarter performance and how we managed our business as I feel that will give good insight into what we expect for the balance of the year and how we plan to manage. We operate in over 100 countries with multiple brands at different price points and in 25 product categories. This diversification provides tremendous flexibility to deliver on our earnings goals. Beyond that, different parts of our business are also at different points in their pandemic recovery. The U.S. market reopened first unleashing significant pent-up demand that drove strong revenue and earnings growth last fiscal year. Europe and Canada, however, reopened later, and we expect that much of that post-pandemic demand should occur this fiscal year and significant population centers in Asia, while less impactful in our business, were shut down for much of the first half of this year and are only recently opening.

所以現在讓我們談談今年剩下的時間和下個季度。我想首先反思我們的商業模式、第二季度的業績以及我們如何管理我們的業務，因為我認為這將很好地了解我們對今年剩餘時間的預期以及我們計劃如何管理。我們在 100 多個國家/地區開展業務，擁有不同價位的多個品牌和 25 個產品類別。這種多元化為實現我們的盈利目標提供了巨大的靈活性。除此之外，我們業務的不同部分也處於大流行恢復的不同階段。美國市場首先重新開放，釋放出大量被壓抑的需求，推動了上一財年的強勁收入和盈利增長。然而，歐洲和加拿大稍後重新開放，我們預計大流行後的大部分需求將在本財年出現，亞洲的重要人口中心雖然對我們的業務影響較小，但在上半年的大部分時間裡都處於關閉狀態年，最近才開業。

On top of all this, we operate with an agile management team that monitors the business carefully and control expenses tightly. We took advantage of that diversification and agility in delivering the results we achieved in the second quarter, and that reflects how we plan to manage the second half. We expect current macroeconomic factors, including ongoing inflation, a more price-sensitive customer and a very strong U.S. dollar to persist. And we expect to use our ability to reduce or defer certain previously planned operating expenses to mitigate those pressures with one exception, currencies. At roughly prevailing exchange rates, currencies now will represent over an 8 percentage point headwind to full year revenues, a 120 basis point compression to adjusted operating margin and nearly a $55 million negative impact to adjusted operating earnings, $15 million worse than it was at our last update. And it is that further $15 million headwind that we do not expect to mitigate.

最重要的是，我們擁有一支敏捷的管理團隊，他們會仔細監控業務並嚴格控制費用。我們利用這種多樣化和敏捷性來交付我們在第二季度取得的成果，這反映了我們計劃如何管理下半年。我們預計當前的宏觀經濟因素，包括持續的通貨膨脹、對價格更加敏感的客戶以及非常強勢的美元將持續存在。我們希望利用我們的能力減少或推遲某些先前計劃的運營費用，以減輕這些壓力，但貨幣是一個例外。按大致現行匯率計算，貨幣對全年收入的影響將超過 8 個百分點，調整後的營業利潤率壓縮 120 個基點，對調整後的營業利潤產生近 5500 萬美元的負面影響，比我們在最後更新。而我們預計不會緩解的還有 1500 萬美元的逆風。

Therefore, for the full year, we are updating our outlook and now expect U.S. dollar revenues will grow about 1.5% and over 9.5% in constant currency. We expect gross margin compression, primarily driven by currencies, a modest decline in IMU as higher product and supply chain costs are nearly offset by price increases, higher markdowns, and an increase in our occupancy rate as our entire retail store fleet has now reopened. We're planning the full year with an adjusted operating margin of roughly 10%, driven mainly by gross margin declines. Based on all of these assumptions, assuming no further share repurchases for the full year, we expect adjusted earnings per share of approximately $2.65. We have included a table in today's release that provides detail of how we arrived at our adjusted EPS calculation.

因此，對於全年，我們正在更新我們的展望，現在預計美元收入將增長約 1.5%，按固定匯率計算將超過 9.5%。我們預計毛利率壓縮，主要受貨幣驅動，IMU 溫和下降，因為更高的產品和供應鏈成本幾乎被價格上漲、更高的降價以及我們的入住率增加所抵消，因為我們的整個零售店車隊現已重新開業。我們計劃全年調整後的營業利潤率約為 10%，主要受毛利率下降的推動。基於所有這些假設，假設全年沒有進一步的股票回購，我們預計調整後的每股收益約為 2.65 美元。我們在今天的新聞稿中包含了一張表格，詳細說明了我們如何得出調整後的每股收益計算。

For the third quarter, we expect U.S. dollar revenues will decline by roughly 4.5% with constant currency revenues increasing by roughly 4.5%. We expect adjusted operating margin of about 8.1%, down roughly 280 basis points. The biggest drivers of the margin compression will be currencies and last year's COVID relief.

對於第三季度，我們預計美元收入將下降約 4.5%，固定匯率收入將增長約 4.5%。我們預計調整後的營業利潤率約為 8.1%，下降約 280 個基點。利潤率壓縮的最大驅動因素將是貨幣和去年的 COVID 救濟。

I'd like to close with a quick reflection and complete the thought on currencies. Since I have been back now a bit over 5 months, I've been so impressed with the great work that the team has done to grow and transform this business. Unfortunately, this year, currencies are masking so much of the great work that this team is doing. To give that context, if I eliminate this year's $55 million operating profit currency headwind all other things being equal. The full year outlook would have instead been for sales growth of over 9.5% to reach over $2.8 billion, operating margin over 11% and operating profit exceeding $310 million. And excluding this year's mark-to-market charges, along with the $55 million operating profit headwind that total currency impact would be nearly $1 per share, a genuinely compelling story masked by so much currency noise.

我想以快速思考結束並完成對貨幣的思考。自從我回來 5 個多月以來，團隊為發展和轉變這項業務所做的出色工作給我留下了深刻的印象。不幸的是，今年，貨幣掩蓋了這個團隊正在做的許多偉大工作。為了給出這種情況，如果我消除今年 5500 萬美元的營業利潤貨幣逆風，所有其他條件都相同。相反，全年預期銷售額增長超過 9.5%，達到 28 億美元以上，營業利潤率超過 11%，營業利潤超過 3.1 億美元。並且不包括今年的按市值計價的費用，以及 5500 萬美元的營業利潤逆風，即總匯率影響將接近每股 1 美元，一個真正引人注目的故事被如此多的匯率噪音所掩蓋。

So with that, I'll conclude the company's remarks, and let's open the call up for your questions.

因此，我將結束公司的評論，讓我們打開電話詢問您的問題。

(Operator Instructions) We have Dana Telsey from Telsey Advisory Group.

（操作員說明）我們有來自 Telsey 諮詢集團的 Dana Telsey。

Dennis and Carlos, so you spoke about the -- as you spoke about the macro environment and what you're seeing in retail and wholesale, both in the U.S. and in Europe, how do you foresee pricing relative to promotions given the inventory levels as we go through the back half of the year and into the upcoming holiday season?

丹尼斯和卡洛斯，所以你談到了——當你談到宏觀環境以及你在美國和歐洲的零售和批發市場看到的情況時，鑑於庫存水平，你如何預測與促銷相關的定價我們經歷了下半年並進入即將到來的假期？

And then in terms of product assortment, you talked about the strength in dressy product, accessories, handbags, what are you seeing in core denim and how that's trending relative to raw material price increases?

然後在產品分類方面，您談到了正裝產品、配飾、手袋的優勢，您在核心牛仔布中看到了什麼以及相對於原材料價格上漲的趨勢如何？

And then lastly, on -- Dennis, as you think about the headwinds of the currency impact, as we get to the fourth quarter, how are you planning it? Is any shaping of how you're thinking about it in the fourth quarter relative to the third quarter in terms of currency?

最後，丹尼斯，當你考慮到貨幣影響的逆風時，當我們進入第四季度時，你是如何計劃的？就貨幣而言，相對於第三季度，您對第四季度的看法有什麼影響嗎？

Thank you, Dana. Well, let me start with your first question about the macro environment. Just -- I think that Dennis talked a little bit about this in his prepared remarks. But we see that the world is different depending on the regions where you are looking and a lot of this has to do with the COVID and the recovery that each of those markets has been going through. So the U.S. was first on this, and there was a significant intervention from the government with a lot of stimulus checks and a lot of money put into and huge pent-up demand drove a very strong business last year. And at the same time, the disruption in supply chain obviously had put some type of limitation on the amount of inventory that was available.

謝謝你，達娜。好吧，讓我從你關於宏觀環境的第一個問題開始。只是——我認為丹尼斯在他準備好的發言中談到了一點。但我們看到，世界因您所關注的地區而異，這在很大程度上與 COVID 和每個市場所經歷的複蘇有關。所以美國首先在這方面，政府進行了重大干預，大量刺激檢查和大量資金投入，巨大的被壓抑的需求推動了去年非常強勁的業務。與此同時，供應鏈的中斷顯然對可用庫存量造成了某種限制。

So I think we all enjoyed a very unusual and extraordinary margin increase as a result of full price selling that was extraordinary for sure. And the fact that the consumer didn't have access to all the inventory that demand was requiring. So those 2 things were very unusual and impacted both our full price selling and, of course, margins.

因此，我認為我們都享受了非常不尋常且非同尋常的利潤增長，因為全價銷售肯定是非同尋常的。而且消費者無法獲得需求所需的所有庫存這一事實。所以這兩件事非常不尋常，影響了我們的全價銷售，當然還有利潤。

Europe is going -- it also had a good experience last year, but then had a reissue that impacted COVID in a significant way. And so now we are up against a very different type of cycle. But when I look at inventories, just we are hearing, and we are seeing that there's a lot of inventory in the system, and there are many companies that will have to move a lot of that inventory. We have seen some normalization of our full price versus clearance or promotional business, but really is still a lot healthier than what we had seen pre-pandemic. So we are very, very pleased with how the business is evolving, and we think that the normalization of full price versus promotional price is very much in line with what we were expecting, and what we are expecting for the future. So we think that the business model that we are running now is very sustainable.

歐洲正在發展——去年它也有很好的經驗，但後來又重新發行，對 COVID 產生了重大影響。所以現在我們面臨著一種非常不同類型的循環。但是當我查看庫存時，我們聽到的是，我們看到系統中有很多庫存，很多公司將不得不轉移大量庫存。我們已經看到我們的全價與清倉或促銷業務的一些正常化，但實際上仍然比我們在大流行前看到的要健康得多。因此，我們對業務的發展方式非常非常滿意，我們認為全價與促銷價的正常化非常符合我們的預期，以及我們對未來的預期。所以我們認為我們現在運行的商業模式是非常可持續的。

Now that being said, we are -- just it's very difficult to know how inventory positions from other companies are faring, and what type of plans do they have to promote during the second half of the year, especially during the holidays. But we are playing our game. We are just concentrating on the things that we can control, which is how we are buying, and we are being very disciplined in the way we are buying. We are always looking at future demand, expected demand. And based on that, we are adjusting our buys very, very carefully. We are being really very, very careful with buys for not just the retail business, which obviously that's something that is based on what we expect from our retail business, but also in the way we are buying product for our wholesale business, which is all based on orders. So we are being very disciplined as well with that business.

話雖如此，我們只是很難知道其他公司的庫存狀況如何，以及他們在下半年，特別是在假期期間必須推廣什麼類型的計劃。但我們正在玩我們的遊戲。我們只是專注於我們可以控制的事情，這就是我們的購買方式，我們在購買方式上非常自律。我們一直在關注未來的需求，預期的需求。基於此，我們正在非常非常謹慎地調整我們的購買。我們在購買零售業務時非常非常小心，這顯然是基於我們對零售業務的期望，而且在我們為批發業務購買產品的方式上也是如此根據訂單。因此，我們對這項業務也非常自律。

And I think that just we believe that the outlook that we shared with you today is reflective of that normalization of full price versus promotional business. And we really are very pleased with where we are with our inventory position because just all the inventory that we have is either justified by the current trends or based on the own orders that we have from our customers at wholesale.

我認為只是我們相信我們今天與您分享的前景反映了全價與促銷業務的正常化。我們真的對我們的庫存狀況感到非常滿意，因為我們擁有的所有庫存要么根據當前趨勢證明是合理的，要么基於我們從客戶那裡獲得的批發訂單。

So let me just move into your second part of the question, and that is about product. And just, yes, definitely, what is driving our business is primarily the dressy part of our assortment, and that there are some differences among regions. But most strongly, just I can -- we can make very clear determination that the customer is enjoying new activities and going out and attending events and social interaction. And as a result of that, just they're looking for a dressy outfit, and we are very lucky because we have a brand that can go from casual to more formal and more for going out type of outfits very, very easily. And of course, this takes a lot of effort from our design teams. Paul has been in -- at the center of all this and driving this. And as a result, we are seeing a big success with most of the categories that you mentioned, dresses. Dresses represents about 1/3 of our women's business in Guess?. It represents about half of our business in Marciano. So you can imagine how important this category is for us. And we are doing really well, the prints, the textures, the fabrics that the product teams are ticking and again, Paul plays a key role in this whole thing is really making us win. Woven tops is another big category. Handbags, you mentioned very big category that we are winning big.

所以讓我進入你問題的第二部分，那就是產品。只是，是的，肯定的是，推動我們業務發展的主要是我們產品中的考究部分，而且地區之間存在一些差異。但最強烈的是，只有我可以——我們可以非常明確地確定客戶正在享受新的活動、外出並參加活動和社交互動。因此，他們只是在尋找一套考究的服裝，我們非常幸運，因為我們擁有一個可以從休閒到更正式的品牌，而且更適合非常、非常輕鬆的外出服裝。當然，這需要我們的設計團隊付出很多努力。保羅一直處於這一切的中心並推動著這一切。因此，我們看到您提到的大多數類別（連衣裙）都取得了巨大的成功。在 Guess? 中，連衣裙約占我們女性業務的 1/3。它代表了我們在馬爾恰諾的大約一半業務。所以你可以想像這個類別對我們來說有多麼重要。我們做得非常好，產品團隊正在打勾的印花、紋理和麵料，保羅在這整個過程中扮演了關鍵角色，這真的讓我們贏了。梭織上衣是另一個大類。手袋，你提到了我們正在大獲全勝的非常大的類別。

Now when you get to the more casual part of the assortment, the wins are not as global as all these categories that I just mentioned. But we're still winning in some areas. Asia is a clear example of that. Denim has been a very strong category for both women and men. And we feel that, that is an ongoing phenomenon there. We don't see that category slowing down. The cost that you referred to, we have seen an increase in cost in our case, because of the elevation of the brand strategy, we have done a very unique type of price increase that is more warranted by based on the increases in quality and also the investment in sustainability that we are making, which is pretty significant. So between those 2 quality upgrade and sustainability, just that represents about 2/3 of the increase in costs that we are experiencing, the other 1/3 is more related to inflationary forces. And denim is no exception to that because we are also improving the quality, and we are also doing a lot for sustainability purposes.

現在，當您進入分類中更隨意的部分時，勝利並不像我剛才提到的所有這些類別那樣具有全球性。但我們仍然在某些領域取得了勝利。亞洲就是一個明顯的例子。牛仔布對於女性和男性來說都是一個非常強大的類別。我們認為，這是一個持續存在的現象。我們沒有看到該類別放緩。您提到的成本，在我們的案例中，我們已經看到成本增加了，因為品牌戰略的提升，我們做了一種非常獨特的價格上漲，基於質量的提高和我們正在對可持續性進行投資，這是非常重要的。因此，在這 2 次質量升級和可持續性之間，僅占我們正在經歷的成本增加的 2/3 左右，另外 1/3 與通貨膨脹力量有關。牛仔布也不例外，因為我們也在提高質量，我們也為可持續發展做了很多工作。

So our cost increases are, I think, very reasonable. We are seeing some promotional activity here in this category, and this is obviously related to the excess inventory that may be in the system from others. But again, we are treating this category in a very similar way that we're treating everything meaning buying based on the expected demand. So I'm going to stop there. And Dennis, if you want to address the currency.

因此，我認為我們的成本增加是非常合理的。我們在此類別中看到了一些促銷活動，這顯然與系統中可能來自其他人的過剩庫存有關。但同樣，我們以非常相似的方式處理這一類別，我們根據預期需求處理所有意味著購買的事物。所以我要停在那裡。還有丹尼斯，如果你想解決貨幣問題。

Sure. Thanks for the question, Dana. So the way we've guided to currency rates that are about where they are right now. So that's what we've run through our model, and that's the additional $15 million of headwinds that we don't see us mitigating through the cost controls that we talked about. But just the average about of the euro -- I'll use the euro because it's the best example. The average last second quarter was about $1.20, and that sort of gradually slowed over the back half of last year. The average is about $1.14 by the time we got to the fourth quarter. So as we sit here right now with euro at parity up against $1.14 in the fourth quarter, we're still going to expect, and we've assumed this in our guidance, we're still going to expect significant headwinds certainly on the translation part.

當然。謝謝你的問題，達娜。因此，我們引導貨幣匯率的方式與它們現在的位置有關。所以這就是我們在我們的模型中運行的內容，這就是額外的 1500 萬美元的不利因素，我們認為我們沒有通過我們談到的成本控制來緩解這些不利因素。但只是歐元的平均值——我將使用歐元，因為它是最好的例子。去年第二季度的平均價格約為 1.20 美元，並且在去年下半年逐漸放緩。到第四季度時，平均價格約為 1.14 美元。因此，當我們現在坐在這裡，歐元兌美元在第四季度上漲至 1.14 美元時，我們仍然會預期，並且我們已經在我們的指導中假設了這一點，我們仍然會預期在轉換方面肯定會遇到重大阻力部分。

Now we do have a hedging program in place. So that cushions some of the buys that Europe makes in U.S. dollars, but not all. So I expect that currency should be -- will be a headwind at these rates for the rest of this year.

現在我們確實有一個對沖計劃。因此，這緩衝了歐洲以美元進行的一些購買，但不是全部。因此，我預計在今年餘下的時間裡，這種貨幣應該會成為這些匯率的逆風。

And speakers at this time, I show no further questions in queue. So I will turn the call back to Carlos for closing comments.

和發言者此時，我沒有在隊列中顯示進一步的問題。因此，我會將電話轉回給 Carlos 以徵求意見。

All right. Thank you, operator. Well, I just want to say thank you, everyone, for your participation today. We are very pleased with our company's momentum. And we are very excited about our future. And I believe that we are managing the business well. We are focusing on what we can control, and we are acting decisively and with a lot of agility, I think, as our team is really being very proactive on this. We appreciate your interest in our company, and we look forward to speaking soon. Have a great day, and thank you for your participation again. Bye-bye.

好的。謝謝你，接線員。好吧，我只想對大家今天的參與表示感謝。我們對公司的發展勢頭感到非常滿意。我們對我們的未來感到非常興奮。我相信我們管理得很好。我們專注於我們可以控制的事情，我們採取果斷行動並且非常靈活，我認為，因為我們的團隊在這方面確實非常積極主動。感謝您對我們公司的興趣，我們期待著盡快發言。祝您有美好的一天，再次感謝您的參與。再見。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

謝謝你們，女士們，先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連接。